Aeon Credit posts record FY14 net profit, revenue

by **Cals** Fri 18 Apr 2014, 02:24

Business & Markets 2014

Written by Yen Ne Foo of theedgemalaysia.com

Thursday, 17 April 2014 10:02

KUALA LUMPUR: Non-bank financial institution Aeon Credit Service (M) Bhd, which posted record net profit and revenue for the financial year ended Feb 20, 2014 (FY14), expects to maintain its performance in the current financial year through making credit facilities available to eligible market segments.

In a filing with Bursa Malaysia yesterday, Aeon Credit said it will continue to open new branches or service centres and expand its business further.

The group saw a 31% jump in net profit to RM175.35 million in FY14 from RM134.13 million the previous year, driven by strong performance in its easy payment operations while growth was also noted for its credit card division. Earnings per share for FY14 improved to 121.77 sen from 102.84 sen in FY13.

Revenue for FY14 rose 44% to RM672.76 million from RM467.13 million, on increased financing transaction volume attributable to continued favourable economic environment, and marketing and promotion activities.

Higher growth was also recorded for the vehicle financing and personal financing operations.

As at Feb 20, 2014, Aeon Credit’s total principal credit cards in circulation increased 10% to 183,000 from the previous year. Financing receivables was RM3.571 billion, up 52% from RM2.357 billion a year ago, while its non-performing loans ratio stood at 2.14% compared with 1.74% as at Feb 20, 2013.

For the fourth quarter ended Feb 20, Aeon Credit saw a 23% growth in net profit to RM47.82 million from RM39.01 million a year ago, while revenue grew 43% to RM187.99 million from RM131.68 million.

In a statement, Aeon Credit said it will seek shareholders approval at its forthcoming annual general meeting in June to declare a final dividend of 24.0 sen per share for FY14.

[You must be registered and logged in to see this image.]

The total interim and final dividends of 46.3 sen for the year represent an increase of 30.4% from total dividends of 35.5 sen paid out in FY13. The payout ratio of the total dividends against annual net profit is 38%.

This article first appeared in The Edge Financial Daily, on April 17, 2014.